Question 3a
Marking Guide
compensation claim | |
| 1 mark per matter, 1 mark per specific procedure | |
| matters: | |
| – materiality | |
| – provision/contingent liability | |
| – recoverability under insurance | |
| – management reluctant to provide | |
| – ref ias 37 (½ mark only) | |
| evidence: | |
| – copy of legal claim | |
| – legal correspondence | |
| – press releases/news stories to establish constructive obligation | |
| – booking conditions to verify legal obligation | |
| – advice given by the company at the time of the incident | |
| – copy of insurance contract | |
| – copy of claim made on insurance | |
| – written representation on outcome | |
| max marks | 8 |